To authorize the Secretary of Housing and Urban Development to prioritize the award of certain housing grants to applicants located in, or serving, low-income communities.
- Bill Number
- H.R. 7791
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Housing and Community Development
- Status
- Introduced
- Latest Action
- 2026-03-04: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-04-30T19:33:11Z
AI-Generated Summary
Purpose of the Legislation
This bill, H.R. 7791, aims to encourage housing development in low-income areas by allowing the U.S. Department of Housing and Urban Development (HUD) to favor grant applications that target or benefit designated "qualified opportunity zones." These zones are specific low-income communities identified under tax law to attract investment and economic growth.
Key Provisions
- Definition of Covered Grants: The bill defines a "covered grant" as any competitive grant administered by HUD that funds the construction, modification, rehabilitation (upgrading or repairing), or preservation of housing. HUD's Secretary has the authority to determine which grants qualify.
- Priority in Awarding Grants: When evaluating applications for these grants, the HUD Secretary may give extra consideration (or "additional weight") to projects that are either located in a qualified opportunity zone or provide substantial and direct benefits to residents of such zones. This priority is optional, not mandatory.
Significant Changes to Existing Law
- The bill introduces a new discretionary priority for HUD in awarding housing-related competitive grants, focusing on opportunity zones established by the 2017 Tax Cuts and Jobs Act (under Internal Revenue Code section 1400Z-1).
- Previously, HUD grant decisions did not explicitly include this weighting for opportunity zones, though general priorities for low-income areas may already exist in some programs. This change formalizes and expands support for these specific zones without altering overall grant eligibility or funding levels.
Potential Impacts
- On Government Agencies: HUD would gain flexibility in grant allocation, potentially streamlining decisions toward underserved areas but requiring updated evaluation criteria or guidelines.
- On Citizens: Residents of qualified opportunity zones (often low-income urban or rural communities) could see increased access to improved housing, leading to better living conditions, reduced blight, and economic revitalization through more construction and preservation projects.
- On International Relations: No direct impacts, as the bill focuses on domestic housing policy.
- Overall, it could boost private investment in housing due to the zones' tax incentives, indirectly supporting community development without increasing federal spending.
Main Stakeholders Affected
- HUD and Federal Agencies: Primary implementer, responsible for applying the priority in grant processes.
- Grant Applicants: Organizations, developers, nonprofits, or local governments applying for HUD housing funds, especially those working in or near opportunity zones, who may gain a competitive edge.
- Residents and Communities: People in the approximately 8,700 designated opportunity zones across the U.S., who stand to benefit from targeted housing improvements.
- Investors and Businesses: Those leveraging opportunity zone tax benefits for housing projects, as prioritized grants could make such investments more viable.
Notable Legal, Constitutional, or Political Implications
- Legal: The bill's use of "may" provides HUD with broad discretion, reducing risks of legal challenges over mandatory preferences. It builds on existing tax code definitions, ensuring consistency without creating new regulatory burdens.
- Constitutional: No apparent issues, as it involves federal spending priorities that align with Congress's authority over appropriations and does not infringe on state rights or equal protection principles.
- Political: This could appeal to bipartisan efforts (introduced by representatives from California and Pennsylvania) to address urban decay and inequality, potentially influencing future housing legislation by linking it to economic incentive programs. Critics might argue it favors certain zones over others, but the optional nature limits controversy.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Rep. Kelly, Mike [R-PA-16], Rep. Fitzpatrick, Brian K. [R-PA-1]
Recent Actions
- 2026-03-04: Referred to the House Committee on Financial Services.
- 2026-03-04: Introduced in House
- 2026-03-04: Introduced in House
Bill Versions
- To authorize the Secretary of Housing and Urban Development to prioritize the award of certain housing grants to applicants located in, or serving, low-income communities. — issued 2026-03-04 — PDF (2 pages)